The Accountant Nov-Dec 2016

Finance and Investment
When Steve Jobs came back, his focus
was on a few products that really
delight people.
In his tenure, Steve Jobs transformed
the music business, the mobile
phone business, the tablet and PC
business which were purportedly
mature stagnant industries. He had
great impact on the world by having
the whole firm do work with a large
number of small, multi-disciplinary
teams, all totally focused on delighting
the customer.
And in so doing, Apple answered
the question: is it possible to make
money by delighting the customer
on a large scale? Yes, it is. It not only
makes money, it makes humongous
amounts of money! Apple went from
being on the brink of bankruptcy in
1997 to being the largest market-cap
company in the whole wide world, all
in just 15 years.
5. Choosing right bank for
you
Identifying and selecting the right
bank for your needs is one of the
important financial decisions we have
to make. Choosing the right bank can
assist you to run your life smoothly. In
contrast, a wrong choice is frustrating,
time consuming and can even cost you
vital opportunities.
The choice of bank should largely
be driven by your banking habits,
personal preferences and bank’s
individual attributes. Here-below are
some of the factors to consider when
selecting the right bank for you.
• Deposit Insurance: It is preferred
that you transact with a bank that
offers insurance on your deposits. This
is important to customers as they will
be compensated in case of failure by
the bank. The best bank is one that
has deposit insurance, but is healthy
enough so that you will never need to
use it.
• Fees: Most banks charge fees for
the services rendered and it is one of its
main factors to pay attention. While
most fees are charged depending
on your banking habits, it is also
important to be aware of standard fees.
Among the fees to consider includes:
• Periodical account maintenance
fees and minimum
balance charges
• Penalties on insufficient funds
• Debit and Credit cards user fees
• Late payment fees for loan
products
• Overdraft charges
Balance Requirements: Some banks
have balance requirements or this
will allow you to negotiate them.
However, others have minimum
balance requirements that can trigger
certain fees. The three main types of
balance requirements are:
• Average monthly balance
• Minimum balance
• Minimum amount in savings
It is advisable that the choice of
balance requirement suits your needs
and does not put you in a financial
bind.
• Interest Rates: This entails looking
for a bank that generates high interest
income on saving accounts and
certificates of deposit and low interest
on loans and advances. In most cases,
it is unlikely that a bank will offer this
combination simultaneously. In other
cases, a customer may tolerate high
interest rates on loans in exchange of
good customer service.
32 NOVEMBER - DECEMBER 2016